Matrixone (NASDAQ:MONEE)
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Company Completes Financial Review and Restatement and Files Form
10-Q and Form 10-K with the SEC
MatrixOne, Inc. (NASDAQ: MONEE), a leading provider of
collaborative product lifecycle management (PLM) solutions for the
value chain(TM), today announced results for its third quarter ended
April 2, 2005 as well as its fourth quarter and fiscal year ended July
2, 2005. The Company also announced that the financial review
conducted under the direction of the Audit Committee of the Company's
Board of Directors has been completed. Further, the Company has
completed the related restatements of its financial statements from
fiscal 1999 through the second quarter of fiscal 2005 and filed with
the Securities and Exchange Commission its Quarterly Report on Form
10-Q for the quarter ended April 2, 2005 and its Annual Report on Form
10-K for the fiscal year ended July 2, 2005.
Financial Results for Third and Fourth Quarter of Fiscal 2005
For the third quarter ended April 2, 2005, total revenues were
$27.0 million, compared to $27.7 million in the same period last year.
For the third quarter, net loss was $6.5 million, or $0.13 per share,
compared to a net loss of $2.4 million, or $0.05 per share, in the
same period last year. For the third quarter ended April 2, 2005,
adjusted net loss(1), which excludes amortization of intangible assets
of $0.3 million, was $6.2 million, or $0.12 per share. There were no
adjustments to net loss for the third quarter ended April 3, 2004.
For the fourth quarter ended July 2, 2005, total revenues were
$32.5 million, compared to $29.6 million in the same period last year.
For the fourth quarter, net loss was $11.7 million, or $0.23 per
share, compared to net income of $0.9 million, or $0.02 per share, in
the same period last year. Net loss for the fourth quarter ended July
2, 2005 includes expenses related to the financial review and
restatement of $4.2 million, or $0.08 per share. For the fourth
quarter ended July 2, 2005, adjusted net loss(1), which excludes
amortization of intangible assets of $0.3 million, was $11.4 million,
or $0.22 per share, compared to adjusted net income(1), which excludes
restructuring gains of $0.1 million, of $0.8 million, or $0.02 per
share, in the same period last year.
For the fiscal year ended July 2, 2005, total revenues were $124.1
million, compared to $109.6 million in the prior fiscal year. For the
fiscal year ended July 2, 2005, net loss was $20.3 million, or $0.40
per share, compared to a net loss of $12.4 million, or $0.26 per
share, in the prior fiscal year. Net loss for the fiscal year ended
July 2, 2005 includes expenses related to the financial review and
restatement of $4.2 million, or $0.08 per share. For the fiscal year
ended July 2, 2005, adjusted net loss(1), which excludes amortization
of intangible assets of $1.1 million, was $19.2 million, or $0.37 per
share. For the fiscal year ended July 3, 2004, adjusted net loss(1),
which excludes stock-based compensation, restructuring charges and
asset impairment and disposal charges of $4.0 million, was $8.4
million, or $0.17 per share.
Financial Review and Restatement Completed
The Company also announced today that the financial review
conducted under the direction of the Audit Committee of the Company's
Board of Directors has been completed. As previously announced,
management and the Audit Committee concluded that errors in revenue
recognition at the Company's Japanese subsidiary required the Company
to restate its previously reported financial results. The restatement,
which affected previously reported financial results from fiscal 1999
through the second quarter of fiscal 2005, has also been completed.
The revenue adjustments made in the restatement related to errors in
revenue recognition principally at the Company's Japanese subsidiary
and resulted in a change in the timing of the recognition of revenue
previously paid for and recognized. The Company also made adjustments
due to: (a) the timing of revenue recognition for certain transactions
in Europe; (b) the timing of revenue recognized related to several
customer arrangements that included certain commitments to provide
future software functionality; (c) the recognition as research and
development expense certain third-party development and licensing
arrangements previously capitalized and recognized as cost of software
license revenues; (d) the timing of the recognition of certain
expenses associated with the revenue being adjusted; and (e)
adjustments to certain other asset and liability accounts.
Total revenues for the six month period ended January 1, 2005, as
restated, were $64.7 million compared to $64.7 million as previously
reported. Net loss for the six month period ended January 1, 2005, as
restated, was $2.0 million compared to $2.3 million as previously
reported. Total revenues, as restated, for fiscal 2004 were $109.6
million compared to $109.1 million as previously reported. Net loss,
as restated, for fiscal 2004 was $12.4 million compared to $16.2
million as previously reported. Expenses related to the financial
review and restatement totaled approximately $5.0 million. The Company
recognized $4.2 million of expenses related to the financial review
and restatement in the fourth quarter of fiscal 2005 and expects to
recognize approximately $0.8 million of expenses related to the
financial review and restatement in the first quarter of fiscal 2006.
Company Files Form 10-Q and Form 10-K
On November 8, 2005, the Company filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q for the quarter
ended April 2, 2005 and its Annual Report on Form 10-K for the fiscal
year ended July 2, 2005. The Company believes that it is now in
compliance with the conditions set forth by the Nasdaq Listing
Qualifications Panel when it granted the Company an additional
extension for continued listing on The Nasdaq National Market until
November 8, 2005. The fifth character "E" will remain appended to the
Company's symbol pending a final determination that the Company is
fully compliant with Nasdaq's filing requirements. The Company
anticipates filing, as soon as practicable, an amended Quarterly
Report on Form 10-Q for the second quarter of fiscal 2005 for the
purpose of restating its condensed consolidated financial statements
for the second quarter of fiscal 2005. The Company will not be filing
an amended Quarterly Report on Form 10-Q for the first quarter of
fiscal 2005 as previously stated.
Company to Host Live Conference Call and Webcast on November 9,
2005
The Company's management team will host a live conference call and
webcast at 5:30 p.m. eastern time on Wednesday, November 9, 2005 to
discuss the Company's financial results for the third quarter ended
April 2, 2005 as well as the fourth quarter and fiscal year ended July
2, 2005. The conference call may be accessed in the United States by
dialing (877) 777-1972 and using passcode "MONE." The conference call
may be accessed outside of the United States by dialing (612) 332-0636
and using passcode "MONE." The webcast will be accessible from the
Company's website at www.matrixone.com/investor.
Key Operational Highlights
The following milestones were completed or announced during the
third and fourth quarters of fiscal 2005:
-- MatrixOne recognized revenue from a number of the world's most
innovative companies, including ARM, a leading provider of
power-efficient microprocessors and related technology and
software; Agilent Technologies' Semiconductor Products Group,
a leading supplier of advanced semiconductor components to the
mobile phone, enterprise storage and networking, and broad
optoelectronic markets; Barilla, the world leader in the pasta
market and the largest producer of bakery products in Italy;
Cummins Inc., a leading provider of power solutions; Fujitsu
Network Communications, a leading provider of customer-focused
IT and carrier-class telecommunications solutions for the
service provider and cable television market; Legrand, a
leading provider of products and systems for electrical
installations and information networks; and Lockheed Martin
Corporation, an advanced technology company.
-- MatrixOne announced several new solutions including the
release of Matrix 10.6, which includes advanced capabilities
for synchronous product development across electrical,
semiconductor, mechanical and software design, enabling
companies to compress development cycles, improve information
reuse and reduce the possibility of product rework, ultimately
enabling companies to produce better products at a lower cost.
Matrix 10.6 also featured a new business process application
called MatrixOne Designer Central(TM), a comprehensive
workgroup design application that allows product designers and
their extended supply chains to manage the design process and
collaborate from one central application, regardless of the
design tools they are using.
-- MatrixOne announced the availability of three new MatrixOne
Accelerators - the MatrixOne Accelerator for Apparel Design
and Development(TM), the MatrixOne Semiconductor Accelerator
for Design to Manufacturing(TM), and the MatrixOne
Semiconductor Accelerator for Enterprise Project
Management(TM). Each of the MatrixOne Accelerators enable
companies to efficiently meet the unique product development
challenges of specific industries by bundling MatrixOne
Business Process Applications with specific industry language
and terminology, data models and schema, pre-defined work
processes and reports, and role-based user interfaces to speed
deployment and ease user adoption.
-- MatrixOne and Telelogic, the leading global provider of
solutions for advanced systems and software development,
announced the availability of a Customer Needs Management
solution that integrates Telelogic DOORS, the leading solution
for requirements management, with MatrixOne Product
Central(TM), the Company's solution for managing a portfolio
of products, features and configurations throughout the
product lifecycle. Together, MatrixOne and Telelogic are
delivering a solution that closes the gap between requirements
definition and design and provides an enterprise-wide view of
product requirements to all product stakeholders including
sales and marketing; product management; systems and software
engineers; electrical, electronic and mechanical engineers;
manufacturing; customers; and suppliers.
-- MatrixOne hosted the MatrixOne Global Customer Conference 2005
(GCC 2005) which was attended by a record number of customers,
prospects and partners from around the world and across every
major vertical market. GCC 2005, themed "Accelerating Return
on Innovation," provided attendees with a unique opportunity
to learn how some of the world's leading-edge companies are
leveraging PLM strategies and solutions from MatrixOne to
transform their businesses and achieve measurable results.
Some of the companies presenting at GCC 2005 included AMR
Research, Agilent Technologies, Boeing Australia Ltd., Johnson
& Johnson Consumer Products Company, LSI Logic, Keppel
Corporation, New Balance, Nortel, Possis Medical, Procter &
Gamble, and Sony Ericsson.
-- MatrixOne was highlighted as a PLM market leader in two recent
industry research reports by Massachusetts-based AMR Research
and Michigan-based CIMdata. MatrixOne was awarded high marks
in AMR Research's recent report entitled "The CIO's Guide to
the PERFECT Product Launch: Translating Innovation to Business
Benefit," which ranked the capabilities of 18 PLM vendors.
MatrixOne received high rankings in some of the report's most
important areas - including customer needs management, product
data management, portfolio management and direct material
sourcing. MatrixOne was also noted as a mindshare and market
presence leader in CIMdata's annual PLM Market Analysis Report
which provides a perspective on PLM across a variety of
industry and geographic sectors, identifies market trends,
reviews investments in PLM-related software and services
during 2004 and forecasts PLM investments for 2005 through
2009.
(1) The Company uses the financial measure adjusted net income
(loss) to supplement its consolidated financial statements,
which are presented in accordance with accounting principles
generally accepted in the United States ("GAAP"). The
presentation of adjusted net income (loss) is not meant to be
a substitute for net income (loss) presented in accordance
with GAAP but rather should be evaluated in conjunction with
net income (loss). The Company's management believes that the
presentation of adjusted net income (loss) provides useful
information to investors because this financial measure
excludes amortization of purchased technology and intangible
assets, which are fixed acquisition-related charges,
restructuring charges, and asset impairment and disposal
charges, which are charges relating to an unusual event, and
stock-based compensation, which is a non-cash charge that
ended during the three month period ended January 3, 2004. For
the three and nine month periods ended April 2, 2005, adjusted
net income (loss) excludes amortization of purchased
technology and intangible assets. For the three month period
ended April 3, 2004, there were no adjustments to net loss.
For the nine month period ended April 3, 2004, adjusted net
income (loss) excludes restructuring charges, asset impairment
and disposal charges and stock-based compensation. For the
three and twelve month periods ended July 2, 2005, adjusted
net income (loss) excludes amortization of purchased
technology and intangible assets. For the three month period
ended July 3, 2004, adjusted net income (loss) excludes
restructuring gains. For the twelve month period ended July 3,
2004, adjusted net income (loss) excludes restructuring
charges, asset impairment and disposal charges and stock-based
compensation. Management does not consider amortization of
purchased technology and intangible assets, restructuring
charges, asset impairment and disposal charges and stock-based
compensation to be part of the Company's on-going operating
activities or meaningful in evaluating the Company's past
financial performance or future prospects. In addition,
adjusted net income (loss) is a primary financial indicator
that the Company's management uses to evaluate the Company's
financial results and forecast anticipated financial results
for future periods. Amortization of purchased technology and
intangible assets relates to the amortization of identified
intangible assets, such as purchased technology, customer
relationships and trademarks and trade names, purchased
through an acquisition. Restructuring charges and asset
impairment and disposal charges are material costs that were
incurred relating to an unusual event to align the Company's
operations and cost structure with market conditions.
Stock-based compensation represents the difference between the
stock option exercise price and the deemed fair value of the
Company's common stock on the date of grant and relates only
to the grant of certain stock options to employees during
fiscal 2000 and 1999, which do not require cash settlement.
The Company's definition of adjusted net income (loss) may
differ from similar measures used by other companies and may
differ from period to period.
About MatrixOne
MatrixOne, Inc. (NASDAQ: MONEE), a leading global provider of
collaborative product lifecycle management (PLM) software and
services, enables companies to accelerate product innovation to
achieve top line revenue growth and improve bottom line profitability.
With world-class PLM solutions and a commitment to customer success,
MatrixOne is focused on helping companies across the automotive,
aerospace & defense, consumer, machinery, medical device,
semiconductor and high-tech industries solve their most challenging
new product development and introduction problems. More than 800
companies use MatrixOne's solutions to drive business value and gain a
competitive advantage, including industry leaders such as BAE Systems,
Bosch, Comau, General Electric, Honda, Johnson Controls, Linde AG,
NCR, Nokia, Philips, Porsche, Procter & Gamble, Sony Ericsson,
STMicroelectronics and Toshiba. MatrixOne (www.matrixone.com) is
headquartered in Westford, Massachusetts, with locations throughout
North America, Europe and Asia-Pacific.
MatrixOne and the MatrixOne logo are registered trademarks, and "a
leading provider of collaborative product lifecycle management (PLM)
solutions for the value chain" is a trademark of MatrixOne, Inc. All
other trademarks and service marks are the property of their
respective owners.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995 - Forward-looking statements in this release do not
constitute guarantees of future performance. For this purpose, any
statements contained herein that are not statements of historical fact
may be deemed to be forward-looking statements. Without limiting the
foregoing, the words "believes," "anticipates," "plans," "expects,"
"intends," and similar expressions are intended to identify
forward-looking statements. Such statements relate, among other
things, to our expected compliance with Nasdaq requirements for
continued listing and our anticipated filings with the Securities and
Exchange Commission. Such forward-looking statements are subject to
risks and uncertainties that could cause our actual results to differ
materially from those anticipated. The risks and uncertainties that
may affect forward-looking statements include, among others: the
continued listing of our common stock on the NASDAQ Stock Market. For
a more detailed discussion of the risks and uncertainties of our
business, please refer to our periodic reports and registration
statements filed with the Securities and Exchange Commission,
including our Annual Report on Form 10-K for the fiscal year ended
July 2, 2005 and our Quarterly Report on Form 10-Q for the fiscal
quarter ended April 2, 2005. The forward-looking statements included
in this press release represent our views as of the date of this press
release. We anticipate that subsequent events and developments may
cause our views to change. We assume no obligation to update any
forward-looking information contained in this press release or with
respect to the announcements described herein.
-0-
*T
MATRIXONE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
-----------------------------------------
April 2, April 3, April 2, April 3,
2005 2004 2005 2004
-----------------------------------------
(As Restated) (As Restated)
Revenues:
Software license $ 7,789 $ 10,006 $ 35,647 $ 27,549
Service 19,227 17,738 55,892 52,445
-------- --------- -------- ---------
Total revenues 27,016 27,744 91,539 79,994
-------- --------- -------- ---------
Cost of Revenues:
Software license 653 645 3,067 2,385
Amortization of purchased
technology 199 -- 531 --
Service 12,115 11,428 35,688 34,592
-------- --------- -------- ---------
Total cost of revenues 12,967 12,073 39,286 36,977
-------- --------- -------- ---------
Gross Profit 14,049 15,671 52,253 43,017
-------- --------- -------- ---------
Operating Expenses:
Selling and marketing 10,271 9,933 31,974 28,092
Research and development 7,795 5,596 21,530 17,227
General and administrative 2,738 2,839 8,020 7,854
Amortization of intangible
assets 121 -- 297 --
Stock-based compensation -- -- -- 567
Restructuring charges -- -- -- 1,884
Asset impairment and
disposal charges -- -- -- 1,680
-------- --------- -------- ---------
Total operating expenses 20,925 18,368 61,821 57,304
-------- --------- -------- ---------
Loss from Operations (6,876) (2,697) (9,568) (14,287)
Other Income, Net 498 300 1,253 949
-------- --------- -------- ---------
Loss Before Income Taxes (6,378) (2,397) (8,315) (13,338)
Provision for Income Taxes 155 42 263 (5)
-------- --------- -------- ---------
Net Loss $ (6,533) $ (2,439) $ (8,578) $ (13,333)
======== ========= ======== =========
Basic and Diluted Net Loss
Per Share $ (0.13) $ (0.05) $ (0.17) $ (0.28)
======== ========= ======== =========
Shares Used in Computing
Basic and Diluted Net Loss
Per Share 51,566 48,394 51,079 48,186
======== ========= ======== =========
Reconciliation of Adjusted Net Loss(1):
Net Loss $ (6,533) $ (2,439) $ (8,578) $ (13,333)
Adjustments:
Amortization of purchased
technology 199 -- 531 --
Amortization of intangible
assets 121 -- 297 --
Stock-based compensation -- -- -- 567
Restructuring charges -- -- -- 1,884
Asset impairment and disposal
charges -- -- -- 1,680
-------- --------- -------- ---------
Adjusted Net Loss(1) $ (6,213) $ (2,439) $ (7,750) $ (9,202)
======== ========= ======== =========
Adjusted Basic Net Loss
Per Share $ (0.12) $ (0.05) $ (0.15) $ (0.19)
======== ========= ======== =========
Adjusted Diluted Net Loss
Per Share $ (0.12) $ (0.05) $ (0.15) $ (0.19)
======== ========= ======== =========
Shares Used in Computing
Adjusted and Diluted Basic
Net Loss Per Share 51,566 48,394 51,079 48,186
======== ========= ======== =========
(1) The Company uses the financial measure adjusted net income (loss)
to supplement its consolidated financial statements, which are
presented in accordance with accounting principles generally
accepted in the United States ("GAAP"). The presentation of
adjusted net income (loss) is not meant to be a substitute for net
income (loss) presented in accordance with GAAP but rather should
be evaluated in conjunction with net income (loss). The Company's
management believes that the presentation of adjusted net income
(loss) provides useful information to investors because this
financial measure excludes amortization of purchased technology
and intangible assets, which are fixed acquisition-related
charges, restructuring charges, and asset impairment and disposal
charges, which are charges relating to an unusual event, and
stock-based compensation, which is a non-cash charge that ended
during the three month period ended January 3, 2004. For the three
and nine month periods ended April 2, 2005, adjusted net income
(loss) excludes amortization of purchased technology and
intangible assets. For the three month period ended April 3, 2004,
there were no adjustments to net loss. For the nine month period
ended April 3, 2004, adjusted net income (loss) excludes
restructuring charges, asset impairment and disposal charges and
stock-based compensation. For the three and twelve month periods
ended July 2, 2005, adjusted net income (loss) excludes
amortization of purchased technology and intangible assets. For
the three month period ended July 3, 2004, adjusted net income
(loss) excludes restructuring gains. For the twelve month period
ended July 3, 2004, adjusted net income (loss) excludes
restructuring charges, asset impairment and disposal charges and
stock-based compensation. Management does not consider
amortization of purchased technology and intangible assets,
restructuring charges, asset impairment and disposal charges and
stock-based compensation to be part of the Company's on-going
operating activities or meaningful in evaluating the Company's
past financial performance or future prospects. In addition,
adjusted net income (loss) is a primary financial indicator that
the Company's management uses to evaluate the Company's financial
results and forecast anticipated financial results for future
periods. Amortization of purchased technology and intangible
assets relates to the amortization of identified intangible
assets, such as purchased technology, customer relationships and
trademarks and trade names, purchased through an acquisition.
Restructuring charges and asset impairment and disposal charges
are material costs that were incurred relating to an unusual event
to align the Company's operations and cost structure with market
conditions. Stock-based compensation represents the difference
between the stock option exercise price and the deemed fair value
of the Company's common stock on the date of grant and relates
only to the grant of certain stock options to employees during
fiscal 2000 and 1999, which do not require cash settlement. The
Company's definition of adjusted net income (loss) may differ from
similar measures used by other companies and may differ from
period to period.
MATRIXONE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Year Ended
----------------------------------------
July 2, July 3, July 2, July 3,
2005 2004 2005 2004
----------------------------------------
(As Restated) (As Restated)
Revenues:
Software license $ 11,653 $ 11,198 $ 47,300 $ 38,747
Service 20,862 18,385 76,754 70,830
-------- -------- -------- --------
Total revenues 32,515 29,583 124,054 109,577
-------- -------- -------- --------
Cost of Revenues:
Software license 1,220 838 4,287 3,223
Amortization of purchased
technology 200 -- 731 --
Service 13,784 11,626 49,472 46,218
-------- -------- -------- --------
Total cost of revenues 15,204 12,464 54,490 49,441
-------- -------- -------- --------
Gross Profit 17,311 17,119 69,564 60,136
-------- -------- -------- --------
Operating Expenses:
Selling and marketing 12,664 8,529 44,638 36,621
Research and development 7,550 5,801 29,080 23,028
General and administrative 8,010 2,402 16,030 10,256
Amortization of intangible
assets 117 -- 414 --
Stock-based compensation -- -- -- 567
Restructuring charges -- (133) -- 1,751
Asset impairment and
disposal charges -- -- -- 1,680
-------- -------- -------- --------
Total operating expenses 28,341 16,599 90,162 73,903
-------- -------- -------- --------
Income (Loss) from
Operations (11,030) 520 (20,598) (13,767)
Other Income, Net 527 444 1,780 1,393
-------- -------- -------- --------
Income (Loss) Before Income
Taxes (10,503) 964 (18,818) (12,374)
Provision for Income Taxes 1,240 37 1,503 32
-------- -------- -------- --------
Net Income (Loss) $(11,743) $ 927 $(20,321) $(12,406)
======== ======== ======== ========
Basic Net Income (Loss) Per
Share $ (0.23) $ 0.02 $ (0.40) $ (0.26)
======== ======== ======== ========
Diluted Net Income (Loss)
Per Share $ (0.23) $ 0.02 $ (0.40) $ (0.26)
======== ======== ======== ========
Shares Used in Computing
Basic Net Income
(Loss) per Share 51,714 48,596 51,238 48,411
======== ======== ======== ========
Shares Used in Computing
Diluted Net Income
(Loss) per Share 51,714 51,445 51,238 48,411
======== ======== ======== ========
Reconciliation of Adjusted Net Income (Loss)(1):
Net Income (Loss) $(11,743) $ 927 $(20,321) $(12,406)
Adjustments:
Amortization of purchased
technology 200 -- 731 --
Amortization of
intangible assets 117 -- 414 --
Stock-based compensation -- -- -- 567
Restructuring charges -- (133) -- 1,751
Asset impairment and disposal
charges -- -- -- 1,680
-------- -------- -------- --------
Adjusted Net Income
(Loss)(1) $(11,426) $ 794 $(19,176) $ (8,408)
======== ======== ======== ========
Adjusted Basic Net Income
(Loss) Per Share $ (0.22) $ 0.02 $ (0.37) $ (0.17)
======== ======== ======== ========
Adjusted Diluted Net Income
(Loss) Per Share $ (0.22) $ 0.02 $ (0.37) $ (0.17)
======== ======== ======== ========
Shares Used in Computing
Adjusted Basic Net Income
(Loss) Per Share 51,714 48,596 51,238 48,411
======== ======== ======== ========
Shares Used in Computing
Adjusted Diluted Net Income
(Loss) Per Share 51,714 51,445 51,238 48,411
======== ======== ======== ========
(1) The Company uses the financial measure adjusted net income (loss)
to supplement its consolidated financial statements, which are
presented in accordance with accounting principles generally
accepted in the United States ("GAAP"). The presentation of
adjusted net income (loss) is not meant to be a substitute for net
income (loss) presented in accordance with GAAP but rather should
be evaluated in conjunction with net income (loss). The Company's
management believes that the presentation of adjusted net income
(loss) provides useful information to investors because this
financial measure excludes amortization of purchased technology
and intangible assets, which are fixed acquisition-related
charges, restructuring charges, and asset impairment and disposal
charges, which are charges relating to an unusual event, and
stock-based compensation, which is a non-cash charge that ended
during the three month period ended January 3, 2004. For the three
and nine month periods ended April 2, 2005, adjusted net income
(loss) excludes amortization of purchased technology and
intangible assets. For the three month period ended April 3, 2004,
there were no adjustments to net loss. For the nine month period
ended April 3, 2004, adjusted net income (loss) excludes
restructuring charges, asset impairment and disposal charges and
stock-based compensation. For the three and twelve month periods
ended July 2, 2005, adjusted net income (loss) excludes
amortization of purchased technology and intangible assets. For
the three month period ended July 3, 2004, adjusted net income
(loss) excludes restructuring gains. For the twelve month period
ended July 3, 2004, adjusted net income (loss) excludes
restructuring charges, asset impairment and disposal charges and
stock-based compensation. Management does not consider
amortization of purchased technology and intangible assets,
restructuring charges, asset impairment and disposal charges and
stock-based compensation to be part of the Company's on-going
operating activities or meaningful in evaluating the Company's
past financial performance or future prospects. In addition,
adjusted net income (loss) is a primary financial indicator that
the Company's management uses to evaluate the Company's financial
results and forecast anticipated financial results for future
periods. Amortization of purchased technology and intangible
assets relates to the amortization of identified intangible
assets, such as purchased technology, customer relationships and
trademarks and trade names, purchased through an acquisition.
Restructuring charges and asset impairment and disposal charges
are material costs that were incurred relating to an unusual event
to align the Company's operations and cost structure with market
conditions. Stock-based compensation represents the difference
between the stock option exercise price and the deemed fair value
of the Company's common stock on the date of grant and relates
only to the grant of certain stock options to employees during
fiscal 2000 and 1999, which do not require cash settlement. The
Company's definition of adjusted net income (loss) may differ from
similar measures used by other companies and may differ from
period to period.
MATRIXONE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
July 2, April 2, July 3,
2005 2005 2004
---------------------------------
(As
ASSETS Restated)
Current Assets:
Cash and cash equivalents $ 107,677 $ 104,990 $ 118,414
Accounts receivable, net 28,620 29,646 25,862
Prepaid expenses and other current
assets 8,822 8,930 5,963
---------- --------- ---------
Total current assets 145,119 143,566 150,239
Property and Equipment, Net 6,096 6,346 7,062
Goodwill 11,929 11,938 --
Other Intangible Assets 7,645 7,962 --
Other Assets 2,171 2,297 2,077
---------- --------- ---------
$ 172,960 $ 172,109 $ 159,378
========== ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 5,941 $ 4,593 $ 3,862
Accrued expenses 23,034 15,869 14,592
Deferred revenues 37,040 35,579 31,250
---------- --------- ---------
Total current liabilities 66,015 56,041 49,704
---------- --------- ---------
Long Term Deferred Revenues 5,163 2,165 1,728
Stockholders' Equity:
Common stock 518 516 487
Additional paid-in capital 227,489 226,776 213,152
Accumulated deficit (128,088) (116,345) (107,767)
Accumulated other comprehensive
income 1,863 2,956 2,074
---------- --------- ---------
Total stockholders' equity 101,782 113,903 107,946
---------- --------- ---------
$ 172,960 $ 172,109 $ 159,378
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*T